Bulls Aim for $2,500 Goal

Ethereum approaches major resistance at $1,865 amid resurging institutional support. Can ETH break through to $2,489?

Ethereum is gradually gaining momentum as Bitcoin holds the $94k level. Currently, Ethereum is trading at $1,799, rising from its 24-hour low of $1,753.

The biggest altcoin faces strong overhead resistance, with the confluence of multiple bearish factors. Will the bullish struggle near $1,864 lead to a positive outcome?

Ethereum Price Recovery Faces Multiple Bearish Challenges

Ethereum’s price trend on the daily chart reveals a robust recovery run, challenging a long-standing resistance trendline. This recovery accounted for a nearly 13% surge last week, showcasing Ethereum’s ability to bounce back amid market fluctuations.

However, the bulls are met with formidable resistance near the $1,850 supply zone, which extends to the 23.6% Fibonacci level at $1,864. This confluence has led to a sudden halt in the bullish momentum, raising concerns among traders. The recent downturn in momentum signals a potential negative crossover in the MACD and signal lines, adding more uncertainty to the market.

Additionally, the declining 50-day EMA, positioned at $1,865, acts as a significant resistance barrier. As the recovery attempts to navigate this high supply pressure area, the possibility of a breakout could unlock trapped momentum, propelling Ethereum to new heights.

Derivatives Traders Anticipate Breakout Run

Despite the strong overhead resistance, the derivatives market shows an optimistic outlook. Traders appear to anticipate a major breakout rally, with recent data from Coinglass indicating a sharp increase in long positions. Over the past 8 hours, long positions surged by 51.47%, pushing the long-to-short ratio above 1.

Pectra Upgrade And Rising Ethereum Buyers

The sentiment surrounding Ethereum is gradually improving, especially with the upcoming Pectra upgrade scheduled for May 7. Success with the Pectra upgrade may lead to a spike in mass adoption. The upgrade promises to deliver faster transactions, reduced gas fees, and improved scalability, which could significantly boost Ethereum’s ecosystem.

As anticipation builds for this upgrade, large entities are taking action by acquiring substantial amounts of Ethereum. After eight consecutive weeks of net outflow, Ethereum ETFs have finally turned positive, with a recent total net inflow of $157 million reported by SoSoValue. This resurgence in institutional investment is noteworthy against the backdrop of recent market trends.

Notably, on April 25, the daily total net inflow for Ethereum ETFs reached $104 million, with BlackRock contributing a significant portion of this at $54.43 million. BlackRock’s holding of $2.18 billion in Ethereum underscores robust confidence in the altcoin.

Additionally, whale activity has surged, with one whale purchasing 30,000 ETH worth $54 million in an over-the-counter deal on Wintermute. Interestingly, a hacker associated with a recent Bitrue incident sold $2.88 million in HOT and SHIB tokens and then proceeded to purchase 1,511 ETH tokens at an estimated price of $1,911.

Following this, the hacker transferred 1,050 ETH through Tornado Cash and retains 16.34 million DAI tokens and 5,111 ETH tokens in a different wallet.

Ethereum Price Targets

Given the improving market sentiment around Ethereum, price analysis indicates significant upside potential. Should the uptrend surpass the 50 EMA line near $1,865, bulls will likely set their sights on the 200-day EMA line.

Presently, the 200-day EMA stands at $2,489, with the 50% Fibonacci level nearby at $2,424. A breakout may unlock an upside potential nearing 40% for Ethereum prices. On the flip side, crucial support remains anchored at the $1,500 psychological mark.